Demand Outweighs Supply in Perth

The Perth property market is seeing higher demand than supply with available stock dropping through over the last few weeks.

REIWA President Damian Collins said despite the COVID-19 pandemic, we are seeing the number of properties for sale and rent continue to reduce each month to currently sit at a six-year low, with 11,690 properties currently for sale and 5,165 properties for rent on reiwa.com.  .

“Perth’s property market has been showing signs of recovery since October 2019 and while COVID-19 may delay this, it most likely won’t stop it. The state’s economy is coming back much quicker than many experts thought and as long as it continues to recover, it is unlikely the property market recovery will be reversed,” Mr Collins said.

Sales market

Sales activity increased 44 per cent in Perth this week, with REIWA members reporting 844 transactions.

This increase can be attributed to a 25.6 per cent rise in house sales, 29.4 per cent rise in unit sales and 108 per cent rise in vacant land sales over the week.

A closer look at listing stock levels shows house listings fell by 0.7 per cent, listings for units remained stable and listings for vacant land decreased by 5.5 per cent.

This week’s total figure is four per cent lower than levels seen four weeks ago and are 30 per cent lower than levels seen a year ago.

Rental market

From a rental perspective, current stock levels are eight per cent lower than April and 29 per cent lower than the same time last year.

“Since the start of the year the vacancy rate has remained under three per cent, with it currently sitting at 2.4 per cent and despite the lack of stock, rentals are still in high demand which REIWA agents on the ground are seeing by the number of people booking into home opens,” Mr Collins said.

“While things are looking positive so far for the property market, we need to ensure that the market continues the recovery we have been waiting for. Therefore, it is time for tax reform in our state and REIWA will continue to lobby for the removal of stamp duty and work with both sides of parliament to find a better solution.”

REIWA members reported there were 4,338 properties for rent in Perth at the end of this week, which is three per cent less than last week.

This week’s rental listings figure is 16 per cent lower than levels seen four weeks ago and are 42 per cent lower than levels seen a year ago.

Leasing activity increased 26 per cent in Perth this week, with REIWA members reporting 1,000 properties leased.

View our Perth Market Snapshot graph for a detailed breakdown of the past week

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